More forced selling expected

SINGAPORE - A GOVERNMENT of Singapore Investment Corp (GIC) official said on Tuesday he expects more forced selling of assets by investors in the next 12-18 months as the 'de-leveraging' in financial markets continues.

GIC also sees investment-grade corporate bonds as more attractive than equities currently, the fund's director of economics and strategy Yeoh Lam Keong, told the Investment Management Association of Singapore conference.

'This is a very destructive process for assets,' Mr Yeoh said, showing a slide that indicated total write downs in the financial sector could reach US$3.8 trillion (S$5.86 trillion) by 2013 and that only about 30 per cent of the losses had been booked so far.

GIC, one of the world's largest sovereign funds with an estimated US$200 billion-plus in assets, had invested aggressively in troubled international lenders, picking up multi-billion-dollar stakes in Citigroup and UBS. -- REUTERS

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